2023 Best Practices Study

Executive Summary

Average Revenues

Regional Distribution

Weighted Average Shareholder Age (WASA) 56.6

$75,400,869

◼ Northeast ◼ Midwest

13.0% 30.4% 19.6% 26.1% 10.9%

◼ West

◼ Southeast ◼ Southwest

Corporate Structure

Profile

Average Number of Shareholders 41.3 Average Number of Agency Locations 15.9

Other 4.3%

C Corp 27.7%

LLC 23.4%

S Corp 44.7%

Revenue Distribution (as a % of Gross Revenue)

Organic Growth in Net Commissions & Fees (excluding contingents, bonuses & overrides)

16.8%

Contingent/ Bonus/ Overrides 8.3%

Other 0.6%

14.5%

12.7%

12.5%

10.8%

9.7%

Commercial P&C 55.7%

7.6%

Group L/H/F 25.3%

6.9%

Personal P&C 10.1%

Total Agency

Commercial P&C

Personal P&C

Group L/H/F

Median

Top Quartile

Note : Commercial P&C includes Bonds/Surety. Group L/H/F includes Group Medical, All Other Group, and Individual L/H/F .

Revenue and Growth

Notes

Account Stratification

• Firms over $25M have a much greater concentration of life & health business than other size categories, generating 25.3% of revenue from L/H/F commissions & fees. This is over 9% higher than any other category. • Firms over $25M shared the highest organic growth rate with agencies in the $5 - $10M range. This achievement was primarily due to posting the highest growth in renewal and new business of all other agency sizes.

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

15.3%

24.8%

◼ $5K to $10K

◼ From 50-100 lives 21.2%

7.5%

◼ $10K to $25K

◼ Over 100 lives

14.5%

54.0%

◼ $25K to $50K

14.2%

◼ > $50K

48.5%

>$25M

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